[RightOnTheLeftCoast]

"From the very first time you understood the monetization of debt (and I suspect you do) from that day forward, you and I have both known what the end would be."

Monetization of debt is just part of it.

The politicization of debt is more worrisome. Such as the strong-arming of mortgage lenders by the likes of Janet Reno and Elliott Spitzer to force them to throw mortgages at people with no documentable income, no credit history, etc., etc., while at the same time lowering statutory floors so even more money could flow out the doors, while at the same time instituting accounting rules that necessitated instantaneous revaluation of balance sheet assets-- a prescription for a whole conga-line of defaults when the market softened.

Then those mortgages got bundled and sold and re-traded and even insured.

Really, looking back, there's just this endless string of WTF moments. But meanwhile, 95% of mortgages are not in trouble. Even those that are have assets attached to them. That's the good news. It will take a while to fix all the damage that's been done. A freer market can do this, given time. IMHO what's going on in D.C. is all about buying time, while (let's pray) not making the problem worse.

[Lloyd227]

"The politicization of debt is more worrisome. Such as the strong-arming of mortgage lenders by the likes of Janet Reno and Elliott Spitzer to force them to throw mortgages at people with no documentable income, no credit history, etc., etc., while at the same time lowering statutory floors so even more money could flow out the doors,"

I am presently reading the actual text of the draft bill now and can assure you these "throwing mortgages at people with no documentable income" is still in there....

Lot's more to read, but already found THAT in the bill.